Energy Global thinks that LNG (liquified natural gas) is going to be an important fuel in our transportation future. In a carbon constrained energy world there is a greater need for clean fuels, and LNG is going to be one of them. “LNG is one of the fastest growing segments of the global natural gas market and since it can be delivered to any destination with an LNG receiving terminal, this fuel is oftentimes more accessible when compared with pipeline gas.” LNG demand is expected to rise by 4.6% annually over the next 15 year. In 2010, LNG’s share of the global gas supply was 9%; by 2030 it is expected to reach 15%. Its growth is forecast to be strong especially in the transportation sector where it is cleaner than and price competitive with diesel for heavy trucking and marine transport. The US, China and Europe are all putting in place policies to encourage greater use of natural gas in the transportation sector.

The opportunity for LNG in transportation is huge. Excluding LNG carriers, there are currently only 20 to 25 LNG fuelled vessels in operation, less than 1% of the world’s total commercial marine fleet. The situation is similar for road transportation vehicles where natural gas vehicles make up less than 2% of total vehicles on the road.

While the industry is not without challenges, the various instruments of government, industry, private sector and consumers are coming together to work towards an energy efficient future, thereby paving the path for LNG to be a fuel of the future.

In a related article, Climate Spectator tells how Northern European ports are converting their marine fuel from diesel to LNG. A combination of European regulations to reduce greenhouse gases and an increase in the number of marine vessels running on LNG is spurring ports in North Europe to install LNG fuel stations for ships, known as bunkering, before the end of this decade.

The overall usage of natural gas vehicles in the U.S. remains minimal. Currently, only about 0.1% of American vehicles use the cleaner-burning hydrocarbon as a fuel source. Adoption for natural gas passenger vehicles has been ever slower…There are two main issues here: Natural gas vehicles are expensive and there is a dearth of refueling stations across the country.